Paris, Berlin Find Key Ally
Over Pact-Breaking Deficits

By

Christopher Rhoads Staff Reporter of THE WALL STREET JOURNAL

Updated July 25, 2003 12:01 a.m. ET

BERLIN -- -- A senior European economic official appeared to side with France and Germany in a high-stakes dispute with some of their neighbors over how strictly to apply fiscal-discipline rules to the 12 countries that use the euro.

The budget deficits of France and Germany, the two largest countries in the 12-nation euro zone, are expected to exceed 3% of gross domestic product this year and possibly next year, too.